You don't think the "buy items in huge bulk off of pallets" model is a little more automated than normal brick and mortar retail?

I guarantee you the average Costco employs far fewer people per store than Walmart.

Not compared to similar business models (i.e. Sams club). They do, however employ fewer people than even Sam's Club, and thats fine. Replacing **** jobs with slightly fewer decent jobs is a net gain for society and for families. Know how many households have two incomes where one of those incomes is used almost entirely to support the things necessary to keep the job (i.e. child care)?